HomeMy WebLinkAboutMinutes - 6/17/2024 - City Council City of McHenry
Council Meeting Minutes
6.17.24
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MINUTES
REGULAR CITY COUNCIL MEETING
Monday, June 17, 2024, 7:00 p.m.
City Council Chambers, 333 S Green St, McHenry, IL 60050
Roll Call: Mayor Jett called the roll call.
Members present Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman
Bassi, Alderman Davis, Alderman Koch, Alderwoman Miller, and Mayor Jett. Others present
Attorney McArdle, Administrator Ostrovsky, Director of Community Development Polerecky,
Finance Director Lynch, Director of Parks and Recreation Hobson, Director of Economic
Development Martin, Chief of Police Birk, City Planner Sheriff, Director of Public Works Wirch,
Deputy Clerk Johnson, and City Clerk Ramel.
Pledge of Allegiance: Mayor Jett led the Pledge of Allegiance.
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Public Comment:
Pete M & Nanci Piccan resident, took the podium and wanted to talk further about Mixed-
used licenses should have more roads and use cases for side by sides and Golf carts,
Green Street, Pearl Street, Riverside Drive business district, and Lincoln Hills area. So far
they have had no arguments on the fee raising as well. Would like to know what else they
can do to help with the zoning. Mayor Jett stated that he would reach out to her and have
her information to do so.
Consent Agenda: Motion to Approve the following Consent Agenda Items as presented:
A. Resolution for the approval and release of Executive Session Minutes and Destruction
of Executive Session Recordings more than 18 Months Old (Deputy Clerk Johnson)
B. Waive the competitive bidding requirements and purchase of replacement rotary joints
and necessary hardware from the dryer manufacturer, Komline-Sanderson, for an
amount not to exceed $52,305.60 including all necessary freight charges (Director
Wirch)
C. Pass an Ordinance Vacating Part of a Sanitary Sewer Easement Located on a Portion
of the Property at 812 N Mill Street, and Authorize the Execution of a Sanitary Sewer
�, Easement Agreement Between the City of McHenry, An Illinois Municipal Corporation
and Taylor Place Apartments — McHenry, LLC (Director Polerecky)
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D. Parks & Recreation Facilities & Special Use Permit Requests
E. June 3, 2024, City Council Meeting Minutes
F. Issuance of$728,481.62 Checks
G. As Needed $559,104.61 Checks
A motion was made by Alderwoman Miller and seconded by Alderman McClatchey to
approve the Consent Agenda Item as presented: Roll Call: Vote: 7-ayes: Alderman Santi,
Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Davis, Alderman Koch,
Alderwoman Miller. 0-nays, 0-abstained. Motion carried.
Individual Action Item Agenda:
A. Annual MS4 Facilities Report �
A motion to accept the MS4 update which will satisfy the City's MS4 stormwater permit
requirement for this year (Director Wirch)
A motion was made by Alderman Santi and seconded by Alderman Glab to approve
Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman
Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Davis, Alderman Koch,
Alderwoman Miller. 0-nays. 0-abstained. Motion approved.
B. East Beach Park Playground Equipment
A motion to approve a proposal from Team Reil for replacing playground equipment at
East Beach Park for $23,173. (Director Hobson)
A motion was made by Alderman Koch and seconded by Alderwoman Bassi to approve
Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman
Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Davis, Alderman Koch,
Alderwoman Miller. 0-nays. 0-abstained. Motion approved.
Alderman Glab stated that Alderman Koch worked hard on this and was long overdue and glad
to see it happen.
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C. Agreement with Advance Real Estate Management LLC
A motion to pass an Ordinance Authorizing the Mayor's Execution of a Memorandum of
Agreement between Advance Real Estate Management LLC and the City of McHenry
(Director Martin)
Alderman Glab stated there is already an agreement with Advacne Real Estate Management
LLC and wanted to know what their addition to this was.
Mayor Jett noted that when there were negotiations with the tenant and landlord this was the
easiest agreement to help get the signed agreement and get in and come to terms to sign the
agreement, it was an easier opportunity.
Alderman Santi talked to staff earlier and did get a better understanding as to why they are
doing it and the industry type, looking forward to them coming into the city and hopes that traffic
supports this to be a successful business.
Alderman Glab wanted to know about the fees and another location, and it was confirmed that
for 4 years this was talked about for the needs, per Mayor Jett.
A motion was made by Alderman McClatchey and seconded by Alderwoman Miller to
`-' approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi,
Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Davis, Alderman Koch,
Alderwoman Miller. 0-nays. 0-abstained. Motion approved.
*Clerks note the full discussion of this Agenda Item can be viewed over the YouTube recording,
this is a summary of what had occurred.
Discussion Item Agenda
A. Discussion regarding the construction of a proposed mixed-use development at 1111
N. Green Street including public structured parking (Administrator Ostrovsky)
Mayor Jett explained how the process would work with the discussion for this evening and
handed it over to Administrator Ostrovsky to begin.
Administrator Ostrovsky thanked the public for attending this important discussion.
Conversations with Shodeen since 2011, the standstill agreement with them since 2023
meaning that they have the exclusive right to develop the properties, this is a separate private
transaction.
The reason it is in front of The Council is the public asked further about public parking, the City
Council stated that they would like to have this conversation. There are 46 parking spaces
� currently, the general impression is that there is not enough parking downtown. The loss of the
46 spaces could cause further concerns. The City would own the proposed parking garage and
own it by paying money from the overnight passes.
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David Patzelt-Shodeen Inc. took the podium regarding an overview of the developments for
the residents in attendance.
He gave some background about Shodeen Inc., they have been in business for 60 years, and
he has been part of them for 30 of those years.
The deck presented showed the area of the site, the former City Hall building, calling it a flag-
shaped lot, the parcel did include the lot north of the landmark school. It did not include the
area left of that.
The issues with easements were reviewed and released by The Council, there is one that is
remaining which is the existing sanitary sewerwhich will be relocated. The right-hand turn lane
southbound is on private property but it is being proposed that that will be vacated. Our plan
maintains space for plan 5 of the Riverwalk phase, along Boone Creek there have been some
illustrations (within the deck). 157 parking spaces with two levels 3200 sq ft of commercial
space and a restaurant with outdoor dining were illustrated as well. Lower-level parking off of
Green Street access, there is no internal ramp connecting the upper and lower levels.
There were some illustrations of what the outdoor space could look like, also showing the
second parking level from Waukegan Street. There was examples of the living spaces as well
as the roof types were discussed too.
Alderman McClatchey asked why the slides were used from the Riverwalk project, and David
stated that they are trying to meet the needs of the Riverwalk and want to work with them ',
therefore that is why the slides were used. Mayor Jett noted that the drawings were done in
2008 and he had reached out to Director Hobson to try to give a visualization of what it could
look like. The slides were used with permission from The City to allow David to give a more
visualized experience to residents attending and The Council.
The Green Street to Pedestrian Bridge was discussed along with some other photographs of
the amphitheater and overlook of Boone Creek.
Mayor Jett explained that they could discuss the height of the building first since two other
items would need reviewing.
Alderman Glab discussed the difference between Landmark School and the 14ft of elevation
and the height of the building from the proposed development.
Alderman McClatchey stated that he thinks it is too big for that location, is not pleased with the
outside of it would like it to be more ornate, and is not happy with the height.
Alderwoman Miller stated that she likes the building, and the topography of the lot would be
nice with the two entrances to parking. It is slightly taller than Landmark School, this building's
height would be less than the flagpole of that school.
Alderman Davis appreciated the illustration and wanted to know how that piece would be left
with Riverwalk and the development. Director Hobson stated that they make plans to
coordinate with The City and the development, with Shodeen. '1
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Alderwoman Bassi stated that she is not comfortable with the 6 stories but is worried about a
parking garage next to an elementary school. She does not think she will be comfortable with
it. Stated there are 88 units for parking told that they are not guaranteed a parking spot, and
how the tenants have a place to park.
David explained that they are against restricted parking. When you go to rent the apartment
from them, it is stated that the parking is in a public parking lot, the municipality issues the
parking permits, and they will work with staff regarding the price of the parking permit per
month. There is a maximum of around 100-150 per month, hence they are being told upfront
as well and the amount of cars can be limited too. They are also told what and where the
visitors park and obtain a permit as well.
Alderman Koch wanted to know if any government entities help finance it, David stated they
are not part of affordable housing they are market-rate housing there is no funding for it.
Mayor Jett asked for the rent amounts if built today, per David they are generally in the $1,800
-$2,400 range depending on the size.
Alderwoman Miller wanted to know when construction will take place if discussions go well, per
David 12 months from now. John Smith the Riverwalk President stated that the unknown piece
is the cost of the Pearl Street Bridge and the potential amphitheater. Director Hobson stated
1.4 million dollars approximately from back in 2017. Stated that 6 months start at design
`-- drawings etc. to ramp up. Alderwoman Miller stated that he could be aligned, however funding
for the Riverwalk is still the question. Mayor Jett stated that he appreciated John Smith and his
help with phase 4 of the Riverwalk.
Alderman Glab asked who pays for the sewer work, it is included in what is on the property for
the Shodeen project. Stated if it has to get moved Alderman Glab would like the developers to
have to pay for it.
Alderman Santi- wants to see a 3D visual looking northbound from Green Street and has
constituents asking the same thing. Also touched on the fact that the outside of the building
may need another look. Stated that he met with someone who lived in Oswego at the facility
Shodeen built there and she loved it.
This discussion went on for some time.
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The next discussion was regarding the parking, 88 units, and 157 parking spaces. This is a
shared parking model as discussed earlier — open public parking during business hours,
residents would need to purchase an overnight pass. City revenue from overnight passes will
help cover the operating expenses in the garage and could help build out a capital reserve to
help plan for the future, per Administrator Ostrovsky.
Estimated lot expenditures were also presented as the engineers gathered those numbers
surface parking vs. standalone and shared parking structures.
Alderman Koch stated that the dollar amounts are a good deal but the height of the building is
his concern. Wants it to fit and wants the money to be used efficiently.
Alderman Davis, agrees there are good and bad but agrees.
Alderwoman Bassi is not in favor of the parking garage.
Alderman McClatchey, the height is too tall for that area, as far as parking thinks it could be a
mess. As far as funding McHenry is not in the business of financing developers, doesn't make
sense to him. Would consider parking across the street, he is not in favor of all of the parking.
Doesn't think it fits �
Alderman Glab stated that he is not for the height of the building, not in favor of any of the
parking options for this discussion.
Cody Sherrif City Planner took the podium as he was to explain the shared parking to The
Council. The shared parking system in the downtown area is best explained as an office
development and restaurant that would share those spaces. It is the most efficient for a growing
city as well.
Alderman Santi has been developing since 2005, to enjoy the downtown area and there is a
large piece of undeveloped land there is a partnership with this, and we should work with it.
Other developers are going to come to us with the type of concept and need to look forward
visually.
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Public Comment:
Nancy Fike- wanted to know more about the presentation and what was going on, the
mass of the building was her concern. They invite the community to have the downtown areas
help welcome this. Parking will always be an issue, worried about the entranceway.
Melanie Deardon- resident 17 years old, concrete jungle, congestion of Green Street, noise out
of hand and it is very clustered everything is being dumped in one spot.
Beatrice Walter, resident of Ward 4. Proximity within the school community is a concern, the
beauty of the Green Street area. Not right for our area.
Bobbie Bahne, resident-very excited to see the progression in the downtown area. Businesses
are looking to come to McHenry. Finds it amazing to see all the people experiencing this.
Disappointed to hear many members that do not want the developer to move forward. 1% tax
in favor of restaurants and bars, to help fund the project.
Tony Esposito resident, issues of the TIF is what is his concern. Wants to know why he is
paying into the TIF to help a developer. He likes to see things progress as well, but wanted to
know what happens with his money going into the TIF, the parking is what is going to help the
businesses.
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Mayor Jett explained how the TIF is Re-TIF'ed
Wayne Smith wanted to know how this was financed, this will be addressed later in the meeting.
Mike the owner of Jexels, a resident of Lakemoor stated that he is for the development. Stated
a pretty nice plan and commented about the 88 more diners, shoppers, etc. Talked about the
shared parking and how it is needed.
Kirk Donald, Johnsburg resident is police protection available, an area for helicopters, etc?
How would the police get into the building?
Eric Si, resident- the height of the FD to respond. Expressed concerns on the parking.
Brian Cunat, a resident-talked about the million dollars that they had donated to the Riverwalk,
happy to see it developing. Concerned about parking and that has been heard for a long time.
Dennis resident- aesthetics need some work, the parking options should be considered. Would
be more open to development plans if the residents owned.
Richard, resident, a 1% sales tax is no big deal, think the timing of the 1% is bad. 1% piles on
to inflation and should not be part of this.
`-- Pam Goth, resident- don't need another development downtown, think that this is what we
need. Talk about it and can do better.
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Nicolas Finney, resident- should not fund it with our taxes, something should go there but a
business should be vested here. Talked about the lifestyle and asked about EV parking, there
is a state code that meets those requirements. Cost-benefit analysis would like to be viewed
and what the benefit to The City.
Rich E- resident, parking needs to be accessible to people the businesses are thriving right
now. The city has done a wonderful job developing The City, don't go backward without there
being parking, it could kill the businesses there.
The TIF funding was also discussed. A 1% food and beverage tax would help generate
$880,000 a year. This discussion went on for some time.
Alderwoman Bassi put an analysis together and wanted to share it with everyone regarding
three parking scenarios. Based on her analysis, she is not comfortable with the project.
Alderman McClatchey wanted to know if there is a developer donation fee, this part has not
been dealt with yet.
Alderman Glab stated that a parking garage is needed.
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Alderwoman Miller stated that we currently own zero parking, and we must develop parking in
every concept that is concerned.
Staff Reports.
Provided the 1St meeting of each month.
Mayor's Report. We talked about this project for 4 years to expand and grow and
unfortunately, not all The Council members took the time to tour, and very disappointed in some
of the Council members here.
City Council Comments: Alderman Glab no secret at the get-go that he did not support from
the beginning no big surprise.
Alderman Santi wanted to know if Alderman Glab was comfortable with the smaller building
asking him to confirm if he had mentioned that. Alderman Glab expressed he did not support
the project.
*Clerks note Executive Session was not needed.
Executive Session to discuss the purchase or lease of real property for the use of the public
body, including meetings held to discuss whether a particular parcel should be acquired (5
ILCS 120/2(c)(5)). �
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Adjourn: A motion was made by Alderman Santi and seconded by Alderwoman Miller to
adjourn the meeting at 10:20 Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab,
Alderman McClatchey, Alderwoman Bassi, Alderman Davis, Alderman Koch, Alderwoman
Miller. 0-nay-, 0-abstained. Motion carried.
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Mayor Wayne Jett City Clerk Trisha Ramel
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